Mod 1 Flashcards
Marketing Concept
How company wants to earn money
Product
• Goods • Services • Ideas • *Understand customer needs o Increasing value what is offered o Offering goods & services • Free gift packaging o Design, Packing
Price
• Given in exchange for goods or services • Waiting in long lines for restaurant • Giving blood • Rent • Fees • Charges o Lower admission
Price Skimming
• Pricing NEW product
• Pricing product high to increase profit
o ie: iPhone
Find out what consumers are willing to pay
If consumer thinks it is too high, can be lowered
Create an image of prestige
If price is lowered, consumers think they’re getting a bargain
• Price can be lowered
• Disadvantage = room for competition
Penetration Pricing
• Pricing NEW product
• Enter a market, price the product lower so more people will buy it
• Increase market share
o Consumers may switch brands if the price is low enough
o May discourage competitors
Leader Pricing
- Established products
- Pricing products below normal cost or below normal mark up to attract consumers to store
- Loss leader
Prestige Pricing
- High prices indicate high status
- If prices were lower, consumers would view as low quality
- Providers known for excellent service
Competitive Pricing
- Setting price of product to competitor pricing
* Use price as feature that differentiates
Promotion
Method to inform and influence customers to buy product • Sponsor • Presentation • Coupons o Directly @ point of sale • Samples • Displays • Shows • Exhibitions • Contest/Sweepstakes • Premiums – buy one, get one • Loyalty Programs o Like airlines
Advertising
• Paid form of promotion by a sponsor delivered through multiple media channels
Personal Selling
- Face to face presentation
* Long term relationships
Sales Promotion
- Activities that promote buying
* Is a direct incentive for consumer to purchase immediately
Public Relations
- Company goals with consumer interest
- Lobbying, publicity, special events
- Are least controllable
- Great deal of relationship-building
Social Media
- Think “buzz”
* Using Facebook, Twitter, Insta to generate buzz
Influencer Marketing
- Paying celebrities
* Paid brand advocates